Replacing the Scarborough RT with a subway, rather than the light rail line currently planned, could threaten funding for the separate light rail line planned for Sheppard Ave. E.

A subway replacement for the RT would cost at least $1.1 billion more than light rail. Mayor Rob Ford, who argues that subways are superior, says the proposal is “dead” if the city cannot secure hundreds of millions of dollars from the federal government.

Ford suggested during a day-long council debate Tuesday that the city could get $333 million for the subway project from Ottawa — precisely the amount the Harper Conservatives were thought to have devoted to light rail on Sheppard.

After councillors raised concerns, Ford walked back his comments, saying that the $333 million was committed to Sheppard. But in an email to the Star later in the day, Finance Minister Jim Flaherty’s spokeswoman confirmed what Ford had said: the $333 million is up for grabs.

“The Harper Government has set aside $333 million for a transit project or transit projects in the City of Toronto. It is not allocated to any specific project, at this time. This funding is available but we are currently waiting for proposals,” press secretary Kathleen Perchaluk said in an email. “As Minister Flaherty indicated, it is not the role of the federal government to decide on the infrastructure priorities of municipalities.”

Ford then said in a statement: “I am not looking to reallocate funding from Sheppard to this project; we need new money.” TTC chair Karen Stintz, who also backs the subway proposal, said the same. And the provincial transit agency, Metrolinx, says the federal money is allocated to Sheppard in the “master agreement” on light rail in the city — though Ottawa did not sign that agreement.

The Flaherty announcement confused an already contentious and muddled debate. Councillor Gloria Lindsay Luby called the news a “game-changer”; Councillor Denzil Minnan-Wong said it left him “speechless.”

The vote will probably be held Wednesday.

It appeared as of Tuesday that a majority of councillors were prepared to choose the subway, and Stintz said her side has the votes to win. But support for the subway seemed to waver at least slightly over the course of the day.

Ford had been touting a property tax hike of 0.25 per cent per year over four years to pay for part of the city’s estimated $563 million share of the tab. He moved a motion, however, for the higher hike the city’s top bureaucrat had recommended: between 1.1 per cent and 2.4 per cent over three years.

He also asked that city officials still try to find ways to keep the increase to the 0.25 per cent. Regardless, the subway plan would require new borrowing that would require at least $30 million per year in debt service charges.

Councillor Joe Mihevc, who will probably support the subway, introduced a motion that would make the city revert to light rail if the federal government did not deliver new funding of $418 million to $660 million for the project.

Councillor Josh Matlow, who supports light rail, tabled a motion that would force a reversal to light rail if the federal money and provincial money listed in the city’s preliminary plan isn’t committed by Aug. 2.

Matlow says subways make sense in some instances, including the DRL. But on this specific route in Scarborough , SRT makes sense because it is grade separated and funded.

The province, which had budgeted $1.8 billion for the LRT, now says it can only provide about $1.4 billion, leaving an estimated gap of up to $1.6 billion between the two options. Ford said the subway proposal will be abandoned if the province doesn’t commit the $1.8 billion.

The unusual debate saw some progressive councillors join forces with the conservative Ford in pushing an expensive new initiative — Mihevc said there was a compelling case for a subway — and one prominent conservative join forces with much of the left in arguing for spending restraint.

That conservative, public works committee chair Minnan-Wong, called the push for a subway a fiscally irresponsible “vote-buying exercise.”

More on thestar.com

We value respectful and thoughtful discussion. Readers are encouraged to flag comments that fail to meet the standards outlined in our
Community Code of Conduct.
For further information, including our legal guidelines, please see our full website
Terms and Conditions.